Too early to think India will replace China in impact on global growth: Raghuram Rajan

Davos:

Former Reserve Bank of India governor Raghuram Rajan said on Tuesday that it is too early to think India will overtake China in affecting global economic growth.

However, the situation may change in the future as India is already the fifth largest economy in the world, it is growing and likely to continue to expand.

Speaking at the World Economic Forum’s (WEF) press conference on the recently released Chief Economist’s Outlook, in which most economists expect a global recession in 2023, Rajan said any recovery in China’s economy would certainly boost the global economy. growth prospects.

Policymakers are now looking at the labor market and the housing market, he said.

Turning to the U.S., he said there are no home sales happening there, but prices are not falling.

“Is it all gloom and doom? Not likely… If Mr Putin decides to end the war, there will definitely be benefits,” Raghuram Rajan noted.

He said there are still 12 months to go and if China improves, that’s probably fine.

“China is trying to get through the pandemic, and China may recover this year, possibly as early as March or April. Some of that will be in the domestic services sector, which probably won’t have any external impact. But any improvement in manufacturing will There could be some impact “in the way of external price softening,” he said.

Asked about India, Raghuram Rajan said: “The argument that India will replace China is too early because India’s economy is much smaller at the moment.” “But over a period of time, this may change because India Already the fifth largest economy, and it can continue to grow,” he added.

(This story was not edited by NDTV staff and was automatically generated from syndicated feeds.)